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Technical innovation and the rising cost of health care

A recent NYTimes.com article talks about cardiologists buying CT scanners and the cost of using new technology in health care:

CT scans, which are typically billed at $500 to $1,500, have never been proved in large medical studies to be better than older or cheaper tests.

Some medical experts say the American devotion to the newest, most expensive technology is an important reason that the United States spends much more on health care than other industrialized nations — more than $2.2 trillion in 2007, an estimated $7,500 a person, about twice the average in other countries — without providing better care.

Vijay, who is a practicing radiologist in India, wonders why a CT scan cost so much in the US:

An abdomen scan at my department costs Rs. 350 (about $ 9 - yes nine dollars). We most often do not charge anything extra for an abdomen scan that goes on to become a transvaginal scan - as it would in case it turns out to be something like an ovarian cyst. So the lady gets two scans for the price of one.

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Posted by: David Porter on June 30, 2008 |
Category: Health Care; Health Care Costs

Cool Whip #7

Wealthy, private health care consultants.

You can find other comics from the series here.

EXTRA: Everyone's a Little Bit Biased (Even Physicians)

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Posted by: David Porter on June 25, 2008 |
Category: Cool Whip; Health Care; Health Care Costs; Patient Navigators

The Gap

gap.jpgArnold Kling has a hypothesis as to why the U.S. lags behind other countries in health care per dollar spent. The Health Care Cost-Effectiveness Gap as it can be called.

"Perhaps the problem with the U.S. health care system is with the way that medicine is practiced. We favor expensive diagnostic procedures, specialist care, and surgeries, where costs are high and benefits tend to be low."

You can read more here.

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Posted by: David Porter on June 01, 2006 |
Category: Health Care Costs; Health Disparities; Health Inequities